We don't like ...

Markets have clearly struggled so far this year to build on the progress of 2003 and 2004. There has been a noticeable increase in volatility and nervousness, with emerging concerns over the state of the global economy.

Rumours abound in the hedge fund market of huge losses and possible collapses. While most investors have little exposure to hedge funds, many are taking on risks by chasing high yields (interest rates) in fixed interest markets.

It's just as risky to follow the latest fad in emerging markets or commodities. Commodities have soared over the last year but now look pricey.

At present this does not feel like an investment world where investors are being rewarded for taking on such risks.